- US president Donald Trump has kicked off a tariff war.
- It sent financial markets plunging.
- Still, VCs forecast $18 billion will pour into crypto this year, while companies prepare to file for IPOs.
It’s going to take a lot more than Donald Trump’s tariff war to dampen bullishness in the crypto industry.
Examples abound.
Just this week, Circle, the USDC stablecoin issuer, announced its intention to go public this year. Another 10 crypto firms are expected to follow suit.
Meanwhile, Robert Le, an analyst at Pitchbook told DL News on Thursday that he’s forecasting a $18 billion bonanza for crypto venture capital investments.
Binance’s $2 billion round is opening the funding flood gates, he said, adding that Kathryn Haun’s Haun Ventures is out to market a $1 billion crypto fund for late-stage companies.
And also this week: Video game retailer GameStop said it plans to raise $1.5 billion for a Bitcoin stockpile, mirroring the tactic of Michael Saylor’s Strategy.
These moves suggest that industry leaders see Trump-induced volatility as a short-term delay on the road to mainstream adoption and higher prices.
While Trump’s tariff policies have rocked markets and sent gold higher, his administration has promised regulatory clarity.
In Washington, policymakers are debating regulations which would reshape the stablecoin industry in the US.
IPO frenzy
Circle’s IPO filing shows the growing optimism that US policymakers will pass some long-desired stablecoin legislation.
And Circle is just the first domino to fall, industry bigwigs say.
“You’re going to see a whole host of companies — come May or June — listing on the New York Stock Exchange or Nasdaq,” Galaxy Digital CEO Mike Novogratz said at the Ondo Summit in February.
Other firms vying to go public include trading platform eToro, Dapper Labs, Consensys, and hardware manufacturer Ledger.
Record-breaking rounds
Venture capitalists are also bullish.
Binance just completed a whopping $2 billion round led by Abu Dhabi-linked investment firm MGX.
“It “sets the stage” for bigger deals, Le told DL News.
Experts foresee an $18 billion funding frenzy in 2025.
And there’s billions of dry powder on the sidelines.
Andreessen Horowitz’s crypto arm has yet to deploy most of its $4.5 billion crypto fund raised in 2022.
Corporate copycats
Corporations are also staying busy — and bullish.
GameStop raised eyebrows this week by announcing it planned to join the ranks of publicly-traded companies that are stockpiling Bitcoin.
The firm, a video game retailer that became famous after a 2021 short squeeze against Wall Street hedge funds, is setting aside $1.5 billion for Bitcoin purchases.
Bitcoin and the broader crypto market have slumped double-digits since Trump took office in January.
But for some, it’s crypto spring.
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.